Question

Which of the following represent a common categorization of control activities?

a) Authorization controls, information-processing controls, physical controls, and segregation of duties.
b) Authorization controls, control over human error, information-processing controls, physical controls, and segregation of duties.
c) Authorization controls, performance reviews, information-processing controls, physical controls, and segregation of duties.
d) Authorization controls, control over human error, information-processing controls, and segregation of duties.

Answer 1

The common categorization of control activities includes authorization controls, information-processing controls, physical controls, and segregation of duties.

Step-by-step explanation:

The correct answer is a) Authorization controls, information-processing controls, physical controls, and segregation of duties. These represent a common categorization of control activities in the field of business and accounting.

Authorization controls involve establishing policies and procedures to ensure that only authorized individuals can access and perform specific actions within the organization. Information-processing controls include measures to protect the integrity and accuracy of financial and operational data.

Physical controls refer to safeguards put in place to protect tangible assets, such as locks, security cameras, and restricted access to sensitive areas. Segregation of duties is the practice of separating tasks and responsibilities to prevent fraud and errors, ensuring that no single individual has control over an entire process from beginning to end.